When buying a vehicle in Ohio, consumers must familiarize themselves with the state-specific regulations that govern the purchasing process.
For example, Ohio law does not grant consumers the general right to cancel a vehicle purchase and receive a refund. Furthermore, the state's Lemon Law typically excludes used cars from its coverage, providing protection only during the first year after purchasing the new vehicle or for vehicles with odometer readings of up to 18,000 miles.
As a result, it becomes essential for buyers to be well-informed about their rights and responsibilities when purchasing a used car in Ohio. By understanding the specific regulations and limitations that apply, consumers can make informed decisions and navigate the buying process with confidence.
What Is the Process for Buying a Car in Ohio?
The approach to purchasing a vehicle in Ohio varies depending on whether one buys from a private seller, a licensed state dealer, or an out-of-state dealer.
The Ohio Bureau of Motor Vehicles (BMV) strives to empower customers to navigate this process. The Ohio BMV ensures that customers know their rights and protections throughout the car-buying process, regardless of whether they are dealing with a private seller, a licensed Ohio dealer, or an out-of-state dealer.
Buying a Vehicle from a Private Seller in Ohio
When purchasing a used car from a private seller in Ohio, buyers should be aware of the necessary legal steps involved, which include:
Title Verification
Title verification is a crucial step when buying or selling a vehicle. It involves confirming the ownership of the vehicle's title to ensure a legitimate and legal transaction.
To verify vehicle title ownership in Ohio, individuals can perform a Motor Vehicle Title Search on the Ohio BMV website. Once the required information is provided, the search results will exclusively display information about titles issued in Ohio.
Alternatively, individuals can write to the Ohio BMV Title Division at P.O. Box 16520, Columbus, Ohio 43216-6520, or visit their office at 1970 West Broad Street, Columbus, OH 43223. They must complete a title request form, providing the vehicle identification number (VIN) and the year and make of the vehicle.
Each title history search costs $2.
VIN Check and Vehicle History Reports
To ensure a wise investment, it is highly recommended to obtain a vehicle history report when purchasing a used car in Ohio.
This report provides valuable information about the vehicle's past, including details about previous owners and any issues it may have encountered, such as accidents or recalls. It also verifies the accuracy of the odometer reading and checks if the car has a salvage title, indicating significant damage or being deemed a total loss by an insurance company.
Individuals can obtain a vehicle history report from the Ohio BMV Title Search system. By entering the VIN on the Vehicle tab, a comprehensive analysis can be accessed.
For out-of-state vehicles, obtain the VIN inspection from a licensed Ohio motor vehicle dealership or through an Ohio deputy registrar license agency.
Individuals may also request other crucial Ohio BMV records, such as the Vehicle Registration Record and Vehicle Title Record. These records can be obtained online through the Ohio BMV Online Services or by completing the Record Request form and submitting it to the specified address. Each record request incurs a fee of $5.
Emissions Testing
Ohio takes great importance in maintaining clean air quality and, as part of this commitment, requires emissions testing or E-Check to ensure compliance with state and federal emissions standards. Emissions testing is mandatory in the following counties:
- Geauga
- Cuyahoga
- Lorain
- Lake
- Portage
- Medina
- Summit
In these counties, commercial vehicles, passenger vehicles, hybrids, and electric cars must undergo emissions testing every two years.
However, certain vehicles are exempt from emissions testing requirements. This includes:
- Non-commercial cars that are older than 25 years
- Motor homes
- Vehicles with parade and exhibition registrations
- Recreation vehicles
The cost for emissions testing in Ohio is generally $18 for most vehicles, although larger commercial vehicles may have higher fees.
Odometer Disclosure Statement
The Odometer Disclosure Statement is crucial when buying a car in Ohio. This document provides vital information about the vehicle's mileage, which must be completed and signed by both the buyer and seller during the vehicle sale.
If there are any significant discrepancies between the disclosed mileage and the actual mileage, it can lead to disputes between the buyer and seller.
Ownership Transfer
Completing the ownership transfer is paramount when buying a car from a private seller in Ohio. To initiate this process, the seller must fill out the "assignment of ownership" section on the back of the title and have their signature(s) notarized. The completed title is then handed over to the buyer to finalize the transfer.
In cases where the title is held electronically, Ohio permits the use of the Ownership Assignment and Title Application for Casual Sale form. This form serves the same purpose as the back of a physical title and enables the assignment of ownership to an Ohio resident.
If the vehicle has a salvage title or another branded title, different regulations may apply.
Note that the Social Security numbers of all parties involved are required for the title transfer. Additionally, photocopies of the title are not accepted in Ohio. Only the original title should be presented for the transfer.
To avoid a late fee, complete the title transfer within 30 days of the sale.
In instances of dual ownership, both parties must be present during the title transfer. However, exceptions can be made if a notarized power of attorney is provided. This allows one party to appoint a representative with a notarized power of attorney to complete the title transfer on their behalf if they cannot be physically present.
License Plates and Registrations
License plates and registrations are crucial in buying a car from a private seller in Ohio. Sellers are responsible for completing a Customer Request to Cancel Vehicle Registration form and submitting it, along with the license plates, to a local Ohio BMV office or the state BMV. This ensures that the registration is canceled and the plates are returned.
Upon acquiring the car, the buyer has a specific timeframe for registering it at their local BMV. The buyer will receive a license plate or temporary tag and a new title during the registration process.
To register the car, the buyer must provide the certificate of title, valid identification, proof of address, and proof of insurance and pay applicable fees, such as Ohio sales tax.
Bill of Sale
While Ohio does not legally require a bill of sale when buying a car from a private seller, it is highly recommended that one be completed. This document serves as a protective measure for the buyer.
A bill of sale memorializes the terms of the sale, including the selling price, mileage, and the names and signatures of both parties, which provide solid evidence and documentation of the transaction.
Buying a Vehicle from a Licensed Dealer in Ohio
When purchasing a vehicle from a licensed dealer in Ohio, buyers gain several benefits compared to buying from private sellers. One significant advantage is that the dealer handles the vehicle title paperwork when purchasing a new motor vehicle.
Licensed dealers also offer legal protections, warranties, and financing options. Furthermore, they ensure compliance with state regulations for a more secure and reliable customer transaction.
By taking notes on the following, buyers can confidently navigate the process and enjoy the advantages of purchasing from a reputable dealer.
Dealer Selection
When individuals in Ohio are in the process of buying a vehicle, selecting the right dealer becomes a crucial decision. Choose a reputable dealership that can be trusted.
The Ohio BMV provides a convenient tool called the Motor Vehicle Dealer Search, which allows individuals to easily check a dealership's credentials. The necessary information can be accessed by entering the business name or permit number.
In addition to checking credentials, conducting thorough research on consumer complaints can provide valuable insights. Individuals should explore resources such as the Ohio Attorney General's Office and the Better Business Bureau and conduct internet searches to uncover any potential red flags or issues reported by previous customers.
Buyer's Guide
When buying a vehicle from an Ohio dealer, be aware of the Buyer's Guide mandated by the Federal Trade Commission (FTC). Dealers must prominently display this guide for every used car they sell.
The Buyer's Guide provides valuable information about the vehicle's major mechanical and electrical systems, including potential problems to watch out for. It also indicates whether the car is being sold "as is" or with a warranty, and if a warranty is offered, the percentage of repair costs the dealer will cover.
The guide advises buyers to get all promises in writing, have the car inspected by an independent mechanic before purchasing, and obtain a vehicle history report. It also directs buyers to visit the FTC's website for information on obtaining reports, checking for safety recalls, and other relevant topics.
Furthermore, the guide includes the dealer's contact information, including a contact for complaints, and reminds buyers that spoken promises are difficult to enforce.
If the sale is conducted in Spanish, buyers can request a Spanish version of the Buyer's Guide.
Warranties
Unlike new cars with a manufacturer's warranty, used vehicles are not required to have a warranty. However, federal law mandates that all dealers display a Buyer's Guide on each car they sell, which outlines the warranty coverage, if any.
Dealers may offer various warranties, including "as is" (no dealer warranty), implied warranties (unspoken promises from the dealer), full warranties (covering all or most systems or components), or limited warranties (covering specific systems or components). If the manufacturer's warranty is still in effect, the dealer may note that in the Buyer's Guide.
If a vehicle comes with a warranty, buyers should ensure they receive a copy and review it carefully to understand what's covered, the repair process, and who's responsible for fulfilling the terms.
Under the federal Magnuson-Moss Warranty Act, buyers can sue for breach of express or implied warranties and potentially recover reasonable attorneys' fees and court costs.
Written Contract
When buying a vehicle from an Ohio dealer, carefully review the written contract and ensure that all verbal promises and representations about the car's condition are included. Buyers should confirm that the agreement has no blank spaces and obtain a copy before finalizing the purchase.
Additionally, Ohio law requires dealers to provide the vehicle's title within 30 days of the purchase. Buyers should make sure they receive the title within this timeframe.
To assist with the process, the Ohio Attorney General's Office offers a Used Car Buyer Checklist, which can be downloaded before purchasing.
If any issues arise during the buying process or with receiving the title, buyers can contact the Ohio Attorney General's Office at 800-282-0515 or file a Consumer Complaint Form.
Purchasing a New Motor Vehicle from an Out-of-State Dealer in Ohio
When purchasing a new motor vehicle from an out-of-state dealer in Ohio, there are specific requirements to obtain the title.
The Clerk of Courts Title Office will need several documents, including the Manufacturer's Certificate of Origin, which must be assigned and notarized if required by the state where the purchase was made. Buyers must also provide the bill of sale and complete the Application(s) for Certificate of Title to a Motor Vehicle form.
If applicable, an Odometer Disclosure Statement must be provided. In addition, buyers are responsible for paying title fees, including any necessary lien holder notation.
Lemon Law in Ohio
In Ohio, the Lemon Law protects consumers who purchase new vehicles with significant unresolved issues compromising safety. For a car to qualify as a lemon, it must meet specific criteria. The vehicle must be a passenger car, light truck, or motorcycle less than one year old or with an odometer reading under 18,000 miles.
Before pursuing a lemon law case, the consumer must give the dealer or manufacturer a reasonable opportunity to repair the issue under warranty. This includes:
- At least three attempts to fix a single problem
- At least eight attempts to resolve multiple issues
- A total of at least 30 days in the repair shop
- At least one attempt to repair an issue that could cause death or serious injury
If the problems persist within these guidelines, the consumer can legally ask the manufacturer to replace the lemon vehicle or refund the total purchase price.
If the manufacturer is unwilling to reach a resolution through arbitration or out of court, the consumer can file a civil suit within five years of the purchase date.
For the purchased used car, check its vehicle history to see if it has been branded as a lemon.
What Are the Fees for Buying a Car in Ohio?
When buying a car in Ohio, there are several fees that buyers need to be aware of. These fees are typically paid at the time of purchase or when registering the vehicle with the state. Here are some standard fees:
Sales Tax
Buyers must pay sales tax on the vehicle's purchase price. The state sales tax rate is 5.75%, but the total tax rate can vary based on local municipalities and can be as high as 8%.
To check the sales tax rates by county, read the Tax Rates and Changes article of the Ohio Department of Taxation.
Registration Fees
This fee is typically charged annually for registering the vehicle with the state. In Ohio, the registration fee is generally based on the vehicle's weight and can range from $31 for passenger cars to $81 for heavy non-commercial trucks with over 3/4 - 1 ton capacity.
In Ohio, vehicle registration involves additional fees. Transferring registration costs $6, and obtaining a temporary tag costs $20.
Title Related Fees
In Ohio, various fees are associated with obtaining a vehicle title. These include certification, duplication, title replacement, and lien notation, each costing $15.
Documentation Fees
Dealers may charge a documentary service fee to cover the cost of processing the paperwork and documentation for the sale.
Loan Fees
If financing the purchase, there may be loan origination fees or other financing charges from the lender.
Apart from the abovementioned fees, there may be additional charges when purchasing a vehicle in Ohio. For more information about fees, check the Documents and Fees page on the Ohio BMV website or contact the local Ohio BMV or the respective licensed dealer.
What Are the Insurance Requirements for Vehicles in Ohio?
In Ohio, it is a legal requirement to have insurance coverage for driving any motor vehicle. Vehicle owners cannot allow anyone else to operate their motor vehicle without insurance.
To demonstrate compliance with the law, proof of insurance must be provided during traffic stops, vehicle inspections, and accident scenes.
The minimum insurance coverage required in Ohio includes:
- $25,000 for property damage resulting from an accident
- $25,000 for injury or death of one person
- $50,000 for injury or death of two or more people
Can a Non-Resident Buy a Car in Ohio?
Non-residents can purchase a vehicle from an Ohio dealer. If the non-resident is from Arizona, Indiana, California, Florida, Michigan, Massachusetts, or South Carolina, the dealer will collect the sales tax for that state.
The Ohio dealer does not collect sales tax for non-residents of other states. However, the buyer must complete an affidavit stating they are an out-of-state resident.
Sales to non-residents taking the vehicle to a foreign country (except Canada) are subject to the 6% Ohio sales tax rate.